Spotting homeowner scams grow hard

They can catch you off guard,

You must keep informed

And heed the signs that warn

Then you'll know the scams to disregard.

Just like death and taxes homeowner scams, rip-offs and cons are a fact of life. The good part about the scams, if there's any good part, is most of them never change, they just dress in different clothes. But to the uninformed they're still effective at separating you from your hard-earned money and if you're not careful your entire home.

Of course one of the favorite targets of con artists, shady businesses and even questionable lenders are African American homeowners. African American homeowners continue to be the least informed and less likely to shop around for the lowest loan fees or negotiate.

The reasons I mention the above statement is why I continue to publish this newsletter and the Black Homeowner news site. To get the word out as a defense to those who would try to take advantage of us ... knowledge is our only defense.

Now you must do your part by informing other homeowners you know of these scams. The only way these scams have a chance to survive is for those who know them to say nothing or neglect warning others.

Here's The Latest Scams to Watch Out For:

• Loan - Foreclosure Rescue Scams.

This scam works to exploit distressed homeowners who face foreclosure. Most of the victims are minority, elderly and low income. But due to the current foreclosure problem , this scam is starting to graduate to middle and even upper middle class neighborhoods.

This scam usually works under the guise of helping the homeowner to avoid foreclosure and saving the homeowners credit. They'll usually get your authorization to negotiate with your lender on your behalf by signing a few routine papers. What the victims don't know is the papers they sign allow them to take ownership of their home (always read the fine print).

Now the swindler can place loans against the property or even sell the property and keep the equity. Reports of these scams litter the files of State Attorney Generals across the country.

• Phishing Schemes.

No this type of fishing is not done with a hook and a pole. This type of "phishing" is done with email. But the purpose is the same, to hook you into giving them your personal identification number or password, etc.

Did you know identity theft is now the fastest growing crime in America? Identity thieves continue to grow more sophisticated and cunning by the day.

The latest scheme they use is to send you email that looks like a legitimate bank or lender you do business with ... all the way down to the logo. They'll often ask you to verify personal information because of some legitimate sounding reason. And if you don't respond they'll have to close your account or they'll give some other urgent reason to respond.

Many uninformed homeowners fall for this scam never knowing that banks and other legitimate organizations never ask you for such information. For example, legitimate companies never request your passwords and personal identification numbers in an email message.

When in doubt it's always best to contact the lender or business by phone to verify if they're asking for this information. In fact, most businesses want to know about any emails you receive asking for this information. Because they recognize phishing as a growing problem, they want to know so they can investigate it.

• Predatory Lending.

Despite the growing number of laws, complaints and legislation against predatory lending practices. Many predatory lenders have gone out of business and others simply gone underground. But others have merely changed clothes, but their target is still the uninformed, the desperate and the gullible.

Yes, they go for the minority, elderly and low income homeowners who have little money or information to protect themselves. For a definition of a predatory lender and how to combat them Click Here!

• Unlicensed Contractors: False Injury Scam.

Don't get me wrong, not all unlicensed contractors are con men, but most con men don't have a license.

Many minority, elderly and low income homeowners are desperate to have home repairs done as cheaply as possible. Because they have little money to have repairs or improvements done this forces them to hire unlicensed contractors.

Many of these scams target minority and low income homeowners and homeowners facing financial hardship.

There's a growing number of slick con men who know the law better than most homeowners. As a result they exploit it by faking injuries and collecting false insurance claims against the homeowner. Did you know in most states if an unlicensed contractor injures themselves on your property you could be liable? The con artist does.

• Mold Inspection and Removal Scam

This is a new scam that's growing fast, especially since Hurricane Katrina and the latest health news concerning mold. I predict as the wet season approaches this scam will increase as many homes experience flooding.

The fear of mold and its affect on the health of homeowners is what drives this scam. Because mold inspection is such a new industry little if any regulation exist to protect the homeowner.

No across-the-board standards exist for acceptable measurements of mold spores. So, unethical mold inspectors can easily make the air in your home appear to carry more mold spores than it really does. Would you know enough to question his findings? Most homeowners wouldn't either.

A favorite method used to beat homeowners is to send a fake sample to the lab for testing. They switch the real sample with mold from a heavily contaminated location. They show you the report from a legitimate lab and you're convinced to give them a generous contract for work to clean up the mess.

To protect yourself never use an inspection service that also performs mold remediation or removal ... or recommends a company who does. I would call this a conflict of interest and an invitation to a rip-off .

Here's another tip. The spore traps used to collect mold samples have a specific serial number of it's own. Make sure you see and write down the serial number before they leave your home.

Conclusion

These are the latest scams attacking the African American homeowner community. Now that you know them spread the word to family and friends and don't allow yourself ... or them to be the victim of these scams.

Continue to stay informed because current information is your best defense. Remember your most important defense is to avoid thinking it could never happen to you. Because this is every con mans favorite advantage.

Roy Primm Founder and Publisher of BlackHomeOwnerNews.com the largest source of information for black homeowners. Subscribe to free newsletter and receive the latest home value increasing tips, free government grants benefiting homeowners. Get free ebook 99 Ways To Live Better On Less Money at ...ShoppersCoach.com

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